At Sentinel Aviation, we always observe with interest the financial results of the leading business jet manufacturers. Two of the largest, Bombardier and Embraer, have reported on their 3rd quarter results in November. We thought it opportune to also take a look at the private jet industry as a whole. Firstly, the results:
Bombardier
On Thursday, November 7th, Bombardier released a report on its financial results for the third quarter of 2024, reporting a total revenue of about $2.1 billion. This was a 12% increase year-over-year. Bombardier revealed that this was somewhat due to aftermarket growth and continued aircraft deliveries.
The company also saw an increase in profit year-over-year, as the company recorded a net income of approximately $81 million in the third quarter. This was an approximate $1 million increase in profit compared to last year’s third quarter.
In the third quarter of 2024, Bombardier delivered a healthy mix of private jets, as it recorded 30 total deliveries across all of its aircraft lines, which includes the Bombardier Challenger series and the Bombardier Global family.
30 Bombardier Jets have been delivered in Q3
The company also reached a backlog of $14.7 billion due to its book-to-bill ratio of 1.0. Bombardier remains on track to meet its delivery guidance for the entire year.
Embraer
The Brazilian aircraft manufacturer reported a successful third quarter. The company’s revenue increased to approximately $1.692 billion in the quarter, which is a 32% year-over-year improvement.
Overall, Embraer saw a total of 59 jets delivered in this year’s third quarter, which was a 26% improvement from last year’s third quarter in which Embraer delivered 47 total aircraft.
59 Embraer Jets have been delivered in Q3
Approximately 16 of these deliveries were commercial jets. Specifically, the commercial aviation business segment was responsible for a revenue of $473.3 million, an 11% increase from last year’s third quarter that reported a revenue of $425 million.
The Private Jet Industry as a Whole
The business jet market in 2024 continues to experience healthy growth, driven by increasing demand for private air travel among high-net-worth individuals and businesses.
Traffic Data
US traffic for the year is down 1% on a strong 2023, according to WingX. Compared with the 2022 post-lockdown peak, US business aviation is down about 6%; and Europe business jet flights are down 2% versus the first half of 2023.
It is worth comparing with figures before Covid 19. WingX says that US business jet traffic is up 28.9% compared with the first six months of 2019.
The big winners in the US are super mid-size jets (up 50.3%), turboprops (47.3%), ultra-long range (45.6%) and very-light jets (39.1%). European business aviation flights are up 7.5% in 2024 compared with the first six months of 2019.
Market Expansion
The global business jet market is valued at approximately $95.8 billion in 2024, with projections to reach $156.99 billion by 2032, growing at a CAGR of 6.4%. This growth is fuelled by rising wealth, increased demand for on-demand charters, and fractional ownership programmes (especially popular in the United States).
Regional Trends
- North America remains the largest market, with strong demand for ultra-long-range jets and advanced charter services.
- Asia-Pacific is emerging as a fast-growing market, driven by wealth growth in countries like China and India and the need for efficient corporate travel.
- Europe is seeing increased interest due to charter expansion and sustainable aviation solutions.
Technological Innovation
The industry is investing in sustainable aviation fuels (SAF), hybrid technologies, and advanced avionics to meet environmental goals and operational efficiency
Charter Growth
Businesses and individuals increasingly favour charter services and shared ownership models for flexibility and cost-effectiveness, further propelling the market.
Longer Term Forecasts
Researchandmarkets.com recently shared their projection for the growth of the business jet charter industry. It is projected to grow at a CAGR of 17.5% between 2024 and 2029 from $7 million (in 2022) to $21 million.Technological advances in the aviation sector and interior cabin products are anticipated to make this growth probable and successful. As business jet rentals are being used for more than one activity now to meet the different needs of individuals, people are gradually apprehending their advantages. These jets provide comfort, optimum performance, convenience, ease of travel, and shorter fleet time, and hence are hugely adding to their enhanced demand.
In Summary
The business jet market’s focus on luxury, sustainability, and operational efficiency ensures its continued growth, with expanding opportunities across both developed and emerging economies.
